Fw: Stock Snapshot: Brookfield Renewable Partners

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On Wednesday, August 26, 2020, 05:02, Steadyhand Blog <info@steadyhand.com> wrote:

View this email in your browser Stock Snapshot: Brookfield Renewable Partners by Salman Ahmed You may recall a feature in our Quarterly Reports known as the 'Stock Snapshot' where we featured a company in one of our funds. We've moved the feature from the Quarterly Report to our blog. Below is a snapshot of Brookfield Renewable Partners, which is held in both our Equity Fund and Income Fund. Overview Brookfield Renewable Partners owns and operates non-greenhouse gas emitting power facilities across five continents. The company has over 5,000 power generating facilities, with nearly 20,000 megawatts of generating capacity, two-thirds of which come from hydroelectric plants, about a quarter from wind and the remaining from solar. Investment Case Voters and governments around the world are increasingly making renewable energy a priority as the effects of climate change become more apparent. Brookfield Renewable, with a track record of profitable investments and existing mix of high-valued assets, should benefit from policies supporting decarbonization. With $3.4 billion of liquidity and willing financial partners, Brookfield has resources to put toward new projects, joint ventures and mergers. It often invests in out-of-favour areas to get better pricing. For example, it recently partnered on a $1.2 billion transaction in Spain. Because of regulatory and economic uncertainty in the country, Brookfield was able to buy the wind and solar project at a discount. Making consistently profitable investments creates a network effect. The profits from existing investments can be put toward new projects. Moreover, investors are more willing to partner with Brookfield given its reputation as an astute operator. The company also benefits from its existing mix of assets. The bulk of its holdings are hydroelectric power facilities which have a longer life-cycle than wind and solar. The higher quality gives it a valuation premium compared to its peers. Risks There is growing interest in renewable energy projects and more investors are looking to invest in this area. Less price-conscious investors may outbid Brookfield for projects, lowering its growth profile or forcing it to make lower-quality investments. The supply and demand of energy can also create fluctuations in the company's financial results. Renewable energy supply can be seasonal and depends on weather patterns outside of Brookfield's control. Energy demand, in general, is also seasonal and impacted by the economic environment. Interesting Fact: Though a Canadian company, Brookfield traces its roots to Brazil as the São Paulo Tramway, Light and Power Company, founded in 1899. Read in browser » Recent Articles: Lori Norman, Investor Specialist The market has given investors a gift. It would be a shame to waste it Getting your big break in finance Walking among giants: Technology's growing dominace of the U.S. market Why you should factor in real estate when you make investment decisions Copyright © 2020 Steadyhand Investment Management Ltd., All rights reserved. You are receiving this email because you opted in at steadyhand.com. Our mailing address is: Steadyhand Investment Management Ltd. 1747 W 3rd Ave, Vancouver, BC, Canada Vancouver, BC V6J 1K7 Canada Add us to your address book unsubscribe from this list    update subscription preferences

Fw: Walking among giants: Technology's growing dominace of the U.S. market

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On Saturday, August 8, 2020, 05:03, Steadyhand Blog <info@steadyhand.com> wrote:

View this email in your browser Walking among giants: Technology's growing dominace of the U.S. market by Tom Bradley At times in every stock market cycle, there will be a proliferation of factoids. These little morsels are fun and usually point out something that seems to be out of whack. In a National Post article in May, I referred to a few such factoids. "The big five tech stocks (Amazon, Microsoft, Apple, Alphabet, and Facebook) now account for more than 20% of the S&P 500, and their value is greater than Japan's Topix index. Microsoft alone is almost worth as much as all stocks in the United Kingdom combined. And in Canada, Shopify, our tech star with $2 billion in sales, is now more valuable than Royal Bank, which last year made $13 billion in profit." These comparisons are even more extreme today. In fact, this week Scott alerted me to a new one (to me). It came from Barry Ritholtz, a U.S. analyst and commentator that we follow. In a Bloomberg article, Barry dissects the U.S. stock market. "Consider just four industry groups — internet content, software infrastructure, consumer electronics and internet retailers — account for more than $8 trillion in market value, or almost a quarter of total U.S. stock market value of about $35 trillion. Take the 10 biggest technology companies in the S&P 500 and weight them equally, and they would be up more than 37% for the year. Do the same for the next 490 names in the index, and they are down about 7.7%. That shows just how much a few giants matter to the index." For the period he's referring to, the S&P 500 was up 2%. If you look in the dictionary for the definition of a 'narrow market', this is it — a 500-stock index that is up 2% for the year when 490 of its constituents are down an average of 7%. Read in browser » Recent Articles: Why you should factor in real estate when you make investment decisions The hardest decision in investing What is going on? Bradley's Brief — Q2 2020 Why investors shouldn't give up on the 'buy and hold' approach Copyright © 2020 Steadyhand Investment Management Ltd., All rights reserved. You are receiving this email because you opted in at steadyhand.com. Our mailing address is: Steadyhand Investment Management Ltd. 1747 W 3rd Ave, Vancouver, BC, Canada Vancouver, BC V6J 1K7 Canada Add us to your address book unsubscribe from this list    update subscription preferences